Based on a survey of 435 CFOs, corporate treasurers and other senior finance executives across North America, the report examines five categories of risks to organizations’ earnings: Financial, macroeconomic, operational, external and commodities.
It finds that three quarters (72 percent) of responding organizations consider managing financial uncertainty their top concern, including the risks associated with credit, liquidity, interest rates and currency/foreign exchange. Respondents also cited risks associated with macroeconomic conditions—such as the pace of economic growth and inflation (38 percent)—and business/operations risks such as supply chain and/or production disruptions, litigation, labor and outsourcing (36 percent). External risks (country, regulatory, natural disaster) and commodity risks (power/heat, crude oil & distillates, agricultural and metals) are also concerns for a significant share of organizations, but to a lesser degree. A full 41% of respondents expect even more earnings uncertainty in the coming years.
About the Global Risk Center
The Global Risk Center is Oliver Wyman's research institute dedicated to analyzing increasingly complex risks that are reshaping industries, governments, and societies. Its mission is to assist decision makers to address these risks through research and insights that combine our rigorous analytical approach to risk management with leading thinking from research partners.
The Association for Financial Professionals (AFP) is the daily resource for a network of more than 16,000 treasury and finance professionals. Headquartered outside Washington, DC, AFP provides members with news, economic research and data, treasury certification programs, networking events, financial analytical tools, training, and public policy representation before legislators and regulators.
AFP's global reach extends to over 150,000 treasury and financial professionals worldwide, including AFP of Canada; London-based gtnews, an on-line resource for the treasury and finance community; and bobsguide, a financial IT solutions network.
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